A Typical Risk with Resource Sharing in the Attempt to Achieve

question 35

Multiple Choice

A typical risk with resource sharing in the attempt to achieve economies of scope is that

• A) supply of the resource may not match the demand for the resource.
• B) resources shared internally tend to be more expensive than those acquired externally.
• C) the quality of resources generated internally is usually not as high as those acquired externally.
• D) the organization tends to over-rely on internal supplies of resources.

Identify the corporate governance structure and roles of key officers.

Understand the concept of limited liability in the corporate form.

Recognize the continuous and perpetual life of a corporation.

Distinguish between publicly held and privately held corporations.

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Definitions:

Investment in Brinkman Corp.

The purchase of equity or debt securities of Brinkman Corporation as a form of investment, expecting to earn returns.

Undervalued Equipment

Equipment whose market price is less than its intrinsic value or original cost, indicating it might have been underestimated in financial records.

Customer List

An asset representing the information and details of consumers who have transacted with or shown interest in a company's products or services.

Net Income

A measure of a company's profitability, calculated as revenue minus costs of goods sold, expenses, taxes, and other deductions, over a specific period.